Massa Machine Tools expects total sales of $20,000. The price per unit is $6. The firm estimates an ordering cost of $9.96 per order, with an inventory cost of $.84 per unit. What is the optimum order size?

• 169 units

• 141 units

• 112 units

• 281 units

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If Analog computers can borrow at 9.1% annually for three years, what is the effective rate of interest on a $765,000 loan where a 20% compensating balance is required?

• 8.67%

• 16.67%

• 11.37%

• 14.12%